A firm with a gross margin as a percent of sales of 20 and a sales-to-stock ratio of 10 has a GMROI of ________.

Name: A firm with a gross margin as a percent of sales of 20 and a sales-to-stock ratio of 10 has a GMROI of ________.
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Question

Quizplus · Accepted Answer

GMROI (Gross Margin Return on Investment) is calculated by multiplying gross margin percentage with sales-to-stock ratio. 
Therefore, GMROI = 20% * 10 = 200%. 
Hence, the answer is C.

A Firm with a Gross Margin as a Percent of Sales